Two new 4-inch iPhones set to debut this year, iPhone with larger display to launch in 2014 or later

Apple (AAPL) is indeed working on a new iPhone with a larger display, but the device will not launch this year according to a new report. Citing unnamed industry sources, Digitimes on Tuesday reports that Apple has plans to unveil two new smartphone models in 2013. The first will be a follow-up to the iPhone 5 and the second will reportedly be a new lower-cost version, as had been previously reported. Both handsets will utilize 4-inch displays according to Digitmes, contradicting earlier reports that one model might include a larger screen.

The site also claims that Apple has a third new iPhone model with a larger display in the works, but the device is not scheduled to debut in 2013.

Digitmes also stated that iPhone shipments in the first quarter of 2013 are expected to reach about 37 million units and the iPhone 5 will account for just over half that figure at 20 million units. iPhone 5 shipments will then drop further to 18 million units in the second quarter, according to the report.